Arguing that the CSO ignored the signs of a turnaround, he expressed confidence that the economy would clock a higher growth rate of 5.5 per cent in the current fiscal and 6-7 per cent in 2013-14.

The CSO's estimates on Thursday pegged the country's GDP growth rate for the current year (2012-13), which draws to a close at the end of next month, at a 10-year low of 5 per cent.

Union finance minister P Chidambaram strikes a gong during the launch of India's new stock exchange MCX-SX in Mumbai as the vice-chairman of MCX-SX Equity, Jignesh Shah (right), looks on

But Chidambaram claimed that the CSO's projection was based on "dated data".

"While 5 per cent growth rate of CSO is low and is a matter of concern... we believe growth will be closer to 5.5 per cent rather than CSO's estimate of 5 per cent...it is possible to get back to that growth path provided we follow prudent and sound policies, invest in our economy, stimulate demand, encourage entrepreneurship and risk taking," Chidambaram said in Mumbai.

He also attended programmes organised by the State Bank of India and he Punjab National Bank. Painting a more optimistic picture than the CSO, Chidambaram said "there are indications of green shoots in the economy" and that "with prudent and sound policy, we can recapture the magic of 2004-08".

The average growth was 8.5 per cent during that period. He also asserted that the CSO's advance estimate of 5 per cent was not the lowest of the decade.

"It is still higher than the two record lows of 2000-01 and 2002-03. There are signs of upturn and that will take us back to high growth path," he added.

Seeking to allay fears that the state of the Indian economy was far worse than being projected, the minister said: "Why should we, without any reason, denigrate our own performance and record?

I have no doubt in my mind that we will come out of trough and will climb back to the growth rate of between 6-7 per cent next year and then between 7 and 8 per cent in the year after."

Appearing to fault the CSO's methodology, he said: "The CSO has extrapolated data for April- November into the year… while that would be normally correct when the trend line continues in the same direction, when the trend line changes, extrapolation is not the method that the institution should follow to project the future."

Asserting that the ministry believed that "the upturn has begun", Chidambaram, however, admitted that "it is a very low curve; it's not V-shaped upturn."